Shadow Welfare minister Chris Bryant says: “Instead of dressing up this unfair Bedroom Tax as a business opportunity, they should be scrapping it”

Social housing tenants can avoid the hated Bedroom Tax by using their spare room to set up a business.

Then they won’t have to pay an extra £14 a week because they can prove they are using extra bedrooms, the Sunday People reports.

Amazingly the loophole was revealed by a Government spokesman in the House of Lords.

Earl Attlee, who is a Tory despite being grandson of Labour post-war PM Clem Attlee, said: “The spare room subsidy encourages people to make full use of their property and to ­consider running a small business. I think that is highly desirable.”

But Shadow Welfare minister Chris Bryant said: “Instead of dressing up this unfair Bedroom Tax as a business opportunity, they should be scrapping it.”

Tenants would first need to get permission from landlords – their council or housing association.